Mphasis to expand outside US, take offerings to Europe

By: | Updated: May 31, 2018 2:27 AM

We attended the Mphasis’ analyst meet where the management reiterated its strategy on growing ahead of industry in both the segments of HP/DXC and Direct international.

Mphasis, HP/DXC, Europe, IT systems, HP entitiesThe F2B strategy is not only helping drive digital transformation for clients but is also giving access to new accounts and larger deals.

We attended the Mphasis’ analyst meet where the management reiterated its strategy on growing ahead of industry in both the segments of HP/DXC and Direct international. Operating margin band has been increased by 100 bps to 15-17% whilst making business investments. The rapid pace of technology disruption is leading to a shift in business models and increasing focus on customer experience. Mphasis (MPHL) with its F2B strategy is helping clients in the digital transformation journey.

The F2B strategy is not only helping drive digital transformation for clients but is also giving access to new accounts and larger deals. This is evident from the large deal wins in FY18 which lends revenue visibility. MPHL will make investments in building capability, sales and marketing and invest in large deal wins. It will see increased focus on marketing and connecting with the analyst community to drive higher deal wins.

Focus will be on bundling the offerings under one brand (vs earlier selling in silos). MPHL is targeting to expand into geographies outside of Americas and take its offerings in Europe. Management is also looking to tap the opportunity in other HP entities. The service transformation offering has seen strong momentum in this segment.

As MPHL is present in core IT systems, applying new technologies is far easier. With continuous improvement in margin, MPHL is targeting to grow faster than the industry. Management highlighted that it will partly invest the efficiencies back into the business and let a portion of it flow through to the margin.

MPHL has infused new talent across levels – executive team, senior leadership positions, and account facing teams in US and Europe. It has also repurposed the business units to collectively pitch as one brand. With Blackstone on board, it also gets access to portfolio companies and the ecosystem.

Mphasis is focusing on 2 primary markets (Americas, Europe) and has adopted a vertical-focused strategy supported by services like Cloud, Digital, cognitive, and traditional offerings. The go-to-market strategy revolves around the core principal of front2back transformation (F2B) for driving the digital transformation and service transformation in the core services.

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